Photocopier Lease and Photocopier Rental

People are often under a false impression when investing in new office equipment like a photocopier, thinking that it is really expensive. Yes, buying outright can be costly, however many don’t realise that there are other options, aside from purchasing, that are worth thinking about. Renting or leasing a new copier could be a sensible alternative to consider. In this blog we will give you a few pointers regarding photocopier rental, versus buying a photocopier.

What are the differences between photocopier leasing and rental, what advantages are there?

Photocopier leasing

If you lease, you agree to pay a monthly amount for a particular period, say 1, 2 or 5 years. In doing this, you will save yourself the huge outlay that would have been used to buy your machine outright, thus enabling this capital to be used for other ventures.  So, leasing would help you to utilise your finances in more useful ways, whilst also keeping your existing credit lines undisturbed.

Usually, a good photocopier leasing company will offer you an extended payment option, with flexible payment terms, leaving you with no capital expenditure, as you don't have to pay the total cost upfront.  Providers will normally give you lease options of between 12-64 months, enabling you to select the payment scheme that is manageable and suited to your funds.

During the course of the lease, any repairs and maintenance expenses will be covered by your lease provider.  What's more, at the end of the agreement, you should be given the opportunity to buy the machine at a fair market price. (This is known as FMV or 'Fair Market Value'.)  If you decide to do this, the lessor (the company who leases the machine to you), will need to assess the machine's value.

Leasing is also 100% tax deductible, so if you are paying corporation tax, your lease payments may be deducted from your taxable profits.  This, in effect will reduce the net cost of leasing your equipment, as opposed to buying, where you can only claim 40% of the purchase price against tax in the first year. After this you'll only be able to claim 25% of the outstanding balance.  So through leasing a copier, not only do you avoid paying the total cost straight away, but you reclaim on a "by payment" basis.

Photocopier rental

There is very little difference between leasing and renting, although renting is far more flexible.  Essentially, renting involves a shorter time span and they are usually on a month to month basis. If you rent, you can upgrade/downgrade if, and when you need to. You are also able to cancel your agreement providing you give notice of 30 days. Cover will still include servicing, parts and supplies, which means you won't incur unexpected repair costs.  Some rental contracts also cover replacement toners, although paper and staple expenses need to be covered by you.

As with leasing, renting can be really beneficial, especially if you are a small business with limited capital. It frees up your assets, allowing you to invest in something more important, whilst still giving you the sophisticated, up to date equipment that you need to fulfil your daily requirements.  Companies owning their machines are only able to upgrade through reinvesting in a newer model, which is costly, whilst rental and leasing lets you to keep up with the latest technology in a more affordable way.  So you can have the best without worrying about the huge outlays that buying would incur!

There must be some disadvantages of renting and leasing? What are they?

Photocopier leasing

One disadvantage is that you will be bound into a 3-5 year lease agreement, in which you could incur a significant charge if you want to end your contract, or change the equipment.  Additionally, some leasing agreements may not be particularly flexible. Furthermore, your provider may ask you to continue with your lease payments and fulfil your contract, even if your company closes.

Photocopier rental

Ultimately, renting a photocopier can work out more expensive than an outright purchase.  Also, as rental agreements are shorter, your payments will be higher than if you lease.

However, despite being more expensive, if you are unsure that you will need your photocopier over a long period of time, then renting is a better option.

So do I rent or lease my photocopier? 

The choice is really up to you, as you have to consider your own circumstances.  As a rough guide though, it makes sense to lease if you are certain that you can cover the monthly lease fee on time for the entire length of your agreement.  Also if you are looking to conserve capital then leasing is perhaps the best option.

If you only need a photocopier for a short time, renting will be more beneficial.  For example, it proves popular for companies who work on a more project basis, as monthly fees include a pre-determined number of pages/copy volume, service, parts, labour and toner etc, although there may be a charge for delivery and collection.

One thing you also need to bear in mind with both these options is that you will never own the equipment, as it still belongs to your provider

Do I need to know any information to help me to decide which to opt for?

Before you set about renting or leasing a copier, firstly consider how much copying you intend to do. If the volume of your copying isn't between 5,000 to 50,000 pages or higher, then try to rent something smaller or buy instead.  Also, you could be offered a discount if you are a non -profit making facility, such as a charity or school.  Make sure you mention this before you sign up to a lease.

Remember to decide on your requirements, regarding the features on your copier before meeting with the vendor. (e.g, printing, faxing, scanning etc).  Knowing what you need will ensure that you don't get something that you don't!

Conclusion

To avoid any nasty surprises when renting or leasing a photocopier follow a few simple rules:

  1. If you opt to lease a copier for a 5 year period, then keep it at 5 years, or go for a shorter term lease.
  2. Go for a fixed term lease agreement, or else the onus will be on you to cancel.
  3. Don't sign a maintenance agreement for any longer than 12 months at once.
  4. Read and digest fully the terms of any agreement that you sign. If in doubt get a professional to read it over too.
  5. Rent or lease your photocopier from Paragon, we're the best!

Paragon Comment

We know that photocopier leasing can be a cost effective alternative to buying a photocopier out right, as there are tax allowances for photocopier leasing that aren't available on outright purchases.

Here at Paragon Document Solutions we have a wide range of photocopiers available for lease, from the very best manufacturers, Toshiba, Canon and Kyocera. Our photocopier lease agreements offer you 1 to 5 year lease periods, deferred payments of 6 months and the option of ownership at the end of the lease.

Our flexible photocopier leasing service also allows you the option of upgrading your lease should your circumstances change at any point during the leasing period. We provide a club class service at a competitive price, our photocopier lease services cannot be surpassed as our customers will tell you.  That's why we are so proud of what we do.

Contact Paragon today about our photocopier leasing and photocopier rental services!

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